The Obama administration is quietly trying to stamp out some of the skimpiest health plans, a decision that industry officials say could trigger yet another wave of cancellation notices.

The administration is targeting a type of coverage called fixed benefit or indemnity insurance, which give patients a fixed sum of money whenever they visit the doctor or land in a hospital.

These plans are less expensive than regular medical insurance because they are less robust. And new federal regulations would make it illegal for insurers to sell these plans as stand-alone insurance coverage. Instead, the Obama administration only wants to allow people to buy fixed-benefit plans as supplemental insurance to a more comprehensive medical plan. (Read More)

Since most of the people who have these plans have low incomes it’s doubtful they’ll be able to afford Obamacare approved policies and keep these fixed benefit policies as supplemental plans.

Ed Morrissey at Hot Air points out that people with the plans mentioned above who might lose their policies. Employers are still deciding what to do once the mandate kicks in. Some are considering dropping health insurance and paying the penalties, others are thinking of cutting the work week to part time or cutting the number of workers they employ. So I would say the debate isn’t over, it’s barely begun.

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